Is UBS's $2 billion loss just the beginning of headaches for the bank? Plus, Europe considers bonds, the biggest IPO from a company you've never heard of, and why Goldman Sachs closed its biggest hedge fund. (Photo: AFP / Getty Images.)

This transcript has been automatically generated and may not be 100% accurate.

... she ... are trying to close at the weekend I know that all are a lot a little tiny things you know it the not so little or alot of things ... that the strings their ... bid for the market up I'm Paul vignette I'm joined by a man who can proudly say ... those charges were dropped ... David Weidner that's right ... very happy ... write what to ... do well ... he added ... in a metal with a Wall Street intimate if ... we can ever remember that we never go out how to pronounce ... on an overseas right now to sell Bryan Low lining it is the latest on ... what to other Bali ... the rogue trader you get through it ... I can sell what happened this morning ... its debt within the lowest era said police here and at an ounce of HIH at the start of the way ... we treat it with ... LIFO charge is this one in charge of ... and a decent position and two charges of having ... false accounting to an extent that we as we speak is about to ... appear to Magistrate's Court here in London ... at Web though the week to charges against him ... how is this ... isn't that the new VFL his second shear zone this morning as is affecting the company right now you know ... I have never check the stock price shortly but at least they but it to be sure it's a debate but for its reputation and ... to add to that Brigitte pivoted said that attendance at the ... end it rates which could hit two books debt to billion and that delivers its debt ... is indeed if one of the time to recover from ... Eileen demoed and that's the real question like ... how this I get to lose two billion dollars trading ETS that I didn't know that's where ... we know it is a reputational issue for UBS ... a lot of the analysts and credit people were following the bank ... have talked about ... have taken a look at this digested the slope and it said lookups ... has enough capital ... to the dollar loss is not going to be the end of it ... but here's the thing ... how much can we trust the internal controls there ... you know is two billion dollars to tip the iceberg in terms of whether or not this bank has ... enough control over ... what people are queuing to register taking ... on how they're dealing with clients Aereas is kind of this it opens a ... can of worms for this company and I can so I mean ... is ... what she has he made any statement as he defended himself in any way he said any ... that ... said not as yet publicly said UBS has said ... that ... he'd sent e-mail to manage as admitting that he had to that made it so that made up some trades ... that is the latest step into this morning that no comments aimed ... at an as yet added interest and came in at the which ... also represented in at least seven Tuesday to try to book them for every spanking in nineteen eighty five at its own to an official comment from from his lawyers said ... yes and that maybe something setting Open he goes on in the next fifteen minutes ... but ask when you step that law firm ... it has moved traders ... interesting stats are a side note here is that on its Facebook page apparently he had posted ... in the last few weeks that he needed a miracle ... he didn't get that miracle relocates ... but he needs another one now ... that he's facing these images ... yes yes I wanted to sell thanks alot we keep an eye on that story obviously we missed it in Europe right now though ... European European finance ministers are meeting the crisis well ... we got that that that deal from the sub central banks ... that is sand bagging the crisis that that really ... let's talk about a real solution steam Fiddler is over there now ... Stephen ... the euro was ... really going to happen ... one thing is pretty short so happen to me on the ... um ... it is moving on to the political agenda interim ... in Europe with Asia the idea of a collective if you of your time bomb for government to get around the problem of the for purposes of the peripheral countries ... but the moment is a long way when it's looking like a privilege depicting at the end of the precipice of of ... of of the liberation political and fiscal consolidation ... a lot of big political questions about the ... of the long way away but moving fractionally ... this is that everything I've heard this week as the Chancellor Merkel Germany's Merkel ... is that she's all for saving Greece will do whatever we can call the bluff overlooking the euro bonds is that still position ... about the position I'm in the ... fear of a government bill to the Number possession of a train in the wake of a crisis but ... I'm ... not her real competition now ... the question with a walk in and if Britain have been predicted go down while ... what the what issues to keep up additional risk to ... leave the country them ... will ... default something like three or even countries leaving the euro zone ... I'm at the moment ... of truth to right the question that that was on what I did that with issues to think about painting of mine ... and although production should do ... other members of the EU who ... maybe don't have seen you know the ... endpoints or the sway of Germany Avici Germany also love the cards here ... but Sarkozy has been a will but more ... of our guests perceptive or open at least about talking about euro bonds ... and ... just kind of a second question to this to mean it is this why ... that the investors in the markets are looking for in terms of like what we get to euro bonds going is this going to give us the competence ... ought to to to ... call this volatility in this crazy of ... these crazy fears over there ... um you're right the boat trip to Durham ... government of him talk about that but at the end of a protest in which a lot of other things are going to happen ... a big if the market sold it to make believe that it would happen ... but it was ... a was ... met with huge impact in some of them ... um ... that was that even if they feel a lot of people talk about that and even the play of the emptively of Korea which has a long long way off ... given the practical how effective implementation ... of all of her typical but rather through all the ... the difference between ... the Wynnum agreement in principle to look at the old to agree to it I'm actually being implemented ... a similar question how Last can only one part as opposed to whitener ... the gauge reaction to the central bank move yesterday and people still excited about that for the starter war and that that is just a ... place full ... cricket ... Cricket over ... her out of the euro to but I think everything that didn't look like it can to protect all of them ... will ... will weaken the euro weakened the dollar rally ... the euro was at the Getty BuddyTV that about ... the commission to look at the age of the kind of pampering I'm it's something that will ... be the focus ... of the Shaoul of Christ this which is the ... lack of ... availability of dollars to buy additional something that's ... really result the probe ... of the bike ... about potentially linked with the ... with the problem of sovereign borrowers and in particular now there's a very ... yet I think Genomic you ... have your own finance ministers meeting see what they say ... move all move on to the U S markets ... a higher open at the start there for the markets final word the markets are right now ... Steven Russolillo honeydew and has been very sharp when the markets to announce some stocks are up again today ... we're isn't every day this week so far and ... right now you know it was looking positive on the latest catalyst with the consumer sentiment ... you not to tell so that means moving the market well well we have to look at twenty six Eitan is over ... so here's the here the numbers are going to look at the expectations of fifty seven point eight ... this is the survey probably overstatement of Michigan and Thomson Reuters ... some fifty seven twenty ... eight times are expected to be set up a seaplane expectation and it's it's a little better ... that is a horrible number right that is a really really bad number that just shows that only a little bit better than last mile and telling the truth now ... than in the conference is still really see him admit that the debt ceiling debacle last last month as well as ... the crisis in Europe people are still really really shaken up by this and so ... on are seeing that come from the market ... was doing that we were sharply higher ... over a hundred on one of the Dow right now you know only of ... identity into him speaking to the carrying resources this morning ... the sense that this risk on day is on ... I mean they really dislike great central bank should take care of that over there we upgrade By Paul B ... it be a very short-term motivation that means risk on right now that's the view that people are saying that nobody is saying that this is the envy ... of ... the central bank support needed to do that then ... the opposite not stop them ... for now at least that prices ... would spiral into we don't address this topic also able that's all ... right now it looks like it that I wanted to signal Research in Motion but is that hurting the market is not going to stay dismal we saw at the same thing as the previous quarter when Research in Motion reported horrible results and their stock tanked is will ... it seems like it's a very company specific ... report ... um it doesn't really vote of the ... year nineteen percent of the unbowed ... more trouble for for other companies in the tech sector people know that though the palms of Research in Motion are well known rate now and so it's I know people aren't aware that that is going to spill over into the mess that is easy to look a little bit dates around eighteen hundred dollars an ounce David Weidner twenty make of this market ... just ... it says ... we're just trying to finish the week without any more you know of craziness and you know unpredictability I really think that ... we're in a Friday Mark aware that with a lack of news ... in the market is essentially flat ... the older style at all these all the stuff is flat and the reality is is that we may see some people ... to surrender the week a kind of stuff but ... they're ... really did just nothing out there to move anything in in any direction at the site about say anything ... until we know in general ... without someone one percent this week weavers in every single day and are less than a percent away from turning positive for the year so I'm so some big moves this week said abt how ... much equipping our reviews the ... ECRI ... the Economic Cycle Research the ... pared their weekly leading index cannot be further into negative territory ... this is this is often a good spell with the economy's going ... and it's not on a good place right now to tell when a second action said there were trying to hold steady ... bring this up and I'm on ... at a point to pilot ... the the the twenty one the SNP do not support they got up to ten he came back from ... that might be important ... coming up next ... Goldman Sachs is closing one on it's ... by Goldman Sachs is closing one of their ... pretty marquee hedge fund actually with the de tails Liz Rappaport ... what to of what's going on with the goal of the alpha for what is it that they were that gold will allow traffic to allow for finding it a kind and ... it's it became one of their biggest hedge funds for a while it was twelve billion dollars in two thousandseven The and that ... it's a quantifying which means that it was ... his computer ... computer models to ... drive all their trading ... and yet they closed at I guess they got a lot of investor redemptions recently ... and ... I mean this one has ... dismissed the specific fund ... cuts and big losses this year right yes as I understand the year to date is tC down around twelve percent ... and that you know I think it other funds in that same category ... had some troubles but it's a little bit ... um I don't know if you can characterize them altogether so it goes down it was that the team to break ... into one ... I mean isn't performance target and the Dodd Frank ... and in the in the ... of the limits on ... private equity and hedge funds and and ... and those things are going to kick into markets ... are ... the parents pay up but ... it is the regulatory concerns versus Gore says performance or maybe a mobile ... it's probably a little bit of of I think ... you know I think it's mostly performance to be honest and I imagine that it's also just a business decision the awareness Goldman to ... put its investments ... in its investment in its aam in its asset management group going forward isn't what I do hedge funds amid IQ describe hedge funds for Avantair likely Goldman started this on the Tinker is a regionally Jesper Partners ... and Dom ... in an expanded it to Plans ... B of the new regulations will change the way that they can do that kind of things so it's I think they're just utter reevaluating of business maxes melamine to our knowledge it booked opinions on this ... this was the fun started when I need to put that snus big name in the one ... you read this is not there you will find Goldman Sachs obviously huge name ... the fact is things being closed down now is is ... is is about more than just this one is saying something ... about the market but hedge funds ... Woodie eyes Makets and I think a little but it's an end of an era kind of moment it when it was or was it didn't it to clients in August two thousand and seven that one month for over twenty percent of bought attention he was really like have big server markings stake in the grounds ... for or the be the beginning of the losses associated with the mortgage market in the credit crisis ... so it's it's her famous for that in and it's famous for Goldman because it got so huge it was like ... you know people like to call Goldman a giant hedge fund and this was Goldman strike hedge funds ... and I think you know ... it's it's it's it's and it's kind of like ... the Edo symbolizes something about Goldman and about the markets I would ... just ... add onto that and I don't know for sure what to think it could be is that you know this mobile phone ... licences when it's been a lot around a long time ... they're a lot of copycats out there and they're a lot of new were sort of ... mouse traps have been built ... you know what one finds actually killed in or sell ... and you know that that possibility is that this this when managers cut to run its course there are a ITIN IMI my one of this whole thing if you're talking about the UBS Trader column of GoalMine Comet the bank's ... I just I I worry that these things are not separate ... ICC World trade using to clean out UBS Siegelman closing the hedge fund Chiesi Central Bank stepping in to try to provide a lot of liquidity to banks I'm you know I'm not saying that something terrible had happened ... I'm saying that there is on its own stock to be concerned ... when risk off in the financial sector right now ... don't say you know look mean they did it like you said that desperate for cash ... and are probably we are re evaluating all there are a couple that separates ... right arm was thanks alot ... of time ... Research in motion a few minutes involved in another bed ever earnings report ... a lot of what ... had been only use it ... but to have a lot of ... other people are not doing so much Dan Gallagher in San Francisco Marketwatch what ... Apple will be taken with RIM's earnings report ... you know there were some feud that I would've bought before the report that there could of been more negative surprises for him but they actually did bring cement yesterday on most concerning was the yet with the claps of their gross margins on with Gemba thirty nine percent down from forty four percent in the year-ago quarter ... I which indicates that they're losing some pricing power in human error emerging markets and strong before ... their guidance for those margins ... for the coming quarter were actually weaker ... civil they have new handsets now on the market under this BlackBerry seven platform ... you know it it seems that they're eager to have to spend a lot more emotion to get those things sold ... and its concert arena margins and could be a long-term problem ... that ... very interesting ... I mean I know ... I pray you know we had a BlackBerry I know that it's not as does the I phone the whole thing ... but ... I mean ... cooking still subsidize their employees having BlackBerrys policy to bring companies given away I Phones ... why doesn't Research in Motion still have a solid business ... business ... but the business' Business ... they are either some stickiness in the corporate business for sure it's not something that died people can change overnight but what I think you've seen over the last ... it's been now three four years the I Phones been the marketing and read phones of in the market ... and more companies are starting to grow more calm more the device's nurse Tarina have policies of allow ... employees to its goal but ... BYU he'll bring your own devices come ... employees can buy the devices they want ... in use them on their networks ... and I think is the answer at the BlackBerry experience is just not kept up with the other devices ... work or employee Strachan ago that rallied guy even if that means they have to buy the device themselves their chains Matt experience and I think were seen ... as more companies allow those of those policies to happen ... for him it's starting to see the error enterprise base side of ulu SMBs cheering them in that area ... I have to ... that your point I mean ... I think we're in this book it still makes money right ... you're surprised if the prom from the investment community first of all we have this huge issue about whether or not ... re management knows what it's doing ... you know is the market the surprises especially surprises on the downside that like a management that can tell you what it's going to be like six months to your head ... secondly ... the RIM story is not a growth story anymore it's about ... you know how much are they going to lose ... so yes they can they can still make money but the reality is is that ... there's not a reason for investors to get into the stock until it becomes in play and I think that that's what's happening now yet at the media giant Alaric and talented opinion on ... that is is Research in Motion imply ... that I wanna ask about the PlayBook ... a win ... but I mean Research in Motion playing out the stock on sale for counter takeover target ... meantime the Shia stocks fall like this that those kind of things come up ... um I think when they get settled in the end of a few factors kind of made it a little less likely ... I'll what it would still be a very large acquisition for some reason smallest baby very few players can actually ... and what the place ... twenty ... twelve who will put a lot of money and actually ... got what it wanted as we know from the filing earlier this week the one it happens ... that the team of Motorola wants dollars on a compelling reason for them to put a lot more money to Research in Motion for those patents ... on and we think of my curse off Chapel the other potential buyers ... the option of our Realty new position in the at least there's not a compelling reason for them to go after him for that ... for the component itself read about it when you exclude that it would be with people be willing to pay back the money ... to get into the device business now looks for question will this ... another device quickly the PlayBook ... their tablet ... is acting the disaster while ... I it certainly was not said it was not a good quarter for it ... I'm ... you know questionable whether going forward organist are discovering it might do that you know there's always those possibilities but ... the the device the unit sales for less than half of what human ... child some moderate estimates were on Wall Street's that really gets twenty people on them and the problem with bag going forward is that that's the one device out there right now ... that she's in this QNX platform it's going to be the company's ... platform going forward for its other smartphones can be more devices on the spot around next year ... and so if if the sales are indicative of people just not ... liking this platform it could mean I'll long-term problems for him beyond just this one to buy its ... I can't think this can still appreciate time ... I look next move on the comeback ... the biggest IPO ... you've never heard of ... RI the markets might be looking at the largest Internet IPO ever history Bing and Google ... and that the company that ... I didn't say I love this one of the UN ... heard of it ... were to find out when Kellen is going to tell us ... with awe ... what is this company ... when trying to enter into an anti knock on the ... market to ensure people can come by Marion think there's there's a lot of my life and ... turned it ... into the fairly large one if not the largest ... aam looks to mention the name the company I love the name the company ... its Beijing Jingdong ... Jingdong Century Trading Co ... that is a mouthful ... it ... there probably are probably better known by their Web site which is called free kick in by ... Monday the trough offered little didn't care for the year ... it's now they're ... looking to do an IPO during the US right ... there are any ... anything to get a raise more money than cool is this to be the biggest Internet IPO in history is that right ... that's right track and under entertaining for the first half of two thousand and twelve ... if they are going to be doing it tomorrow and I've been ... saying that they're they're very foolhardy or or or cranky ... I'm not a great merger in an upright piano that ... especially not a good market for Chinese IPO right ... looking into the first half of two thousand twelve in Argentina ... I at that point calm calm the market's going to be looking at could be better ... what's the story ... this is simply this is the Chinese Amazon and are there any critics out there ... about this company ... I absolutely I get to it ... the company on ... a ... comparable tenant on because it operates a lot like Amazon and ... a warehouse than it shipped things directly to him emerge ... it ... has warehouse in and got a good delivery system ... by ... it is dwarfed in comparison ... by another company island ... called Taobao ... which had ... the lion's share of the market over in China ... and not public and ... I'm you know by Alibaba and well I know is ... with any US investor wanna buy into a Chinese company right now ... all the accounting issues ... given how opaque the Chinese market is ... in the US investor really wanted us to the Chinese company ... very question I think right and and curious nobody dies ... the ads or should I I think in order for the company to be able to track ... your progress through the first thing that's going to happen ... and in that ... U S company are going have to be by an IPO by the things that money ... I know this you really need the IPO market overall to improve first and ten ... Chinese IPO which I think I mean right now and really the riskiest IPO's out there ... might have a chance ... um ... they ... they really haven't been shy in their origin ... and ... I think it could be a hard sell but why cant that that that were talking ... that they may be nearing her no ... the bid from arcana our time and thank you very much less ... Beijing Jingdong Century Trading Co keep an eye out for ... it could check the markets see where things stand right now twenty five minutes into our shown here ... now he will move to ... Dallas title is Your ECRI I think it was the ECRI thing I'd tell him what don't show it might've been ... the row by ... Nasdaq is down so we get a look at ECRI in doesn't mean that really shows where the economy is going ... to not really going anywhere ... he sees pyrotechnics that you get from the central banks are great ... cannot solve problems yet since it's useful because we get some ... data in the rehab this period were re don't have given that we get something else bad and then ... headed to sense the Cascade going ... to yell ... I guess one question do wonder what cellphone enough ... clamor for you and I Phones ... my toes the expiring on to tell you though I was on the train this morning stalled like ... anyway so I'm quickly when the report ... reflect the diverse a group of people talking about dream earnings in this and wanted to I haven't you have the new BlackBerry ... Eni said I'd just like that it's what she ... saw me ... he was overheard over the anecdotal research guys out there in Canada ... up next week is gonna come for you know it and to give me a look at the next week ... MarketWatch's Laura mind are in San Francisco ... what is on tap next week lor ... I am Brit friend and I can underestimate the power have anything out of Europe whether ... now is that ... of the few guys the media need the love and faith and she's right and I can't ... aam but there is a little bit more as scheduled back in this trap that the killing of an ... interest earning forgot earnings from Oracle ... from nineteen from from other on a smaller tech meet the building and Red Hat ... Amin were also higher with no winding down at the we might get more and parent treaty with on what the other companies to ... think about their earnings ... and then of course we have a two-day Fed meeting ... a lot of expectations of around that and and Kelley be ... choppy trading ahead of ... the statement ... one thing ... on Wednesday ... and ... he'll earnings ... Oracle ninety until the end Oracle certainly isn't bellwether we expect that of that ... I ... have three of the growth of Corinth cant that ... I think that we will be very sensitive to whether they lean on a weaker global economy we have ... and have settled for different demand that the Fed ... held off on the purchase and during that told us that and ... now her eying and and and to um it's a stalemate and in Congress ... in the from herself ... ALM that that impact them I would able to sell their way through and like ... the threat of a ... positive note about it thinking that ... aam they will be strong ... on an eye on the interplay Friday popular soap ... aam there might be some hope there but I I would be the price from one of the other thing here more comment about the economy ... on that and and everything to life ... it's a two-part question first auction for parts ... the ... on the keeping very short and sweet and that is you mention the Fed meeting coming up I mean ... you think that that's just the Fed meeting might still ... on investors' hopes that ... Kiwi three all QE remind any kind ... well I recorded that it was that of the Bromley Tom ... the quest and battle it seems that confront us right now sort of is drifting towards ... on one hand and ... a free tool for they've ... IMN stand to and from anywhere and that of the last of the ten thousand or higher have ... really severe public information and that the firm called Operation Twist ... with ... anything it's kind of a change at the Martin place while ... chartered I maturity debt among richer a bet that the results to be on the depressed on Monday and rates which I pretty Loughner all ... around me more passionate store leases ... yes I am ... and then they ... in our stock in height that tactic that the market had grown to ... over the last couple years that it therefore ... to be handed to ... an incremental of the morning at the foothills of housing data next week right ... and ... I mean that that that that I am refinance some of the way of telling friends ... and existing home sales for the sentiment that ... I don't think it is expected to show anything great of ... an analytic I like ... to go ... on now ... folks that's all time we have for comeback in you Wendy Bounds in the lunch break ... thanks for watching ... been